As the lack of credit was reflected in the land market?





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01.10.2010 08:07
Articles about real estate | As the lack of credit was reflected in the land market? In the land market continues to be observed falling prices, banks are reluctant to make loans to build houses, and sites continue to buy only for their savings.

The global financial crisis has affected the real estate market in all possible directions. In each case, there are many factors that could affect the fall in land prices. But in many countries of the world prices of land have fallen so much that in the near future no one can make predictions on the rise in prices.

In most cases, the land purchased to begin the construction of private houses, but the loans are taking longer to the construction itself, than to buy the site. People set aside money, accumulate the amount needed to purchase land, and only then think about the possibility of taking credit for the construction of houses. In this regard, the lack of loans for purchasing real estate is not reflected in the land market, as a general decline in incomes of citizens in many countries. But the lack of strong attachment to the banks did not stop the fall in prices in some regions - in two and even three-fold.

Decide to build a house less and less, mainly due to the fact that the market for ready-made proposals of private houses is full of interesting suggestions, the prices which seem to be much more profitable than building on its own with considerable expenditure of time and nerves.

For large land plots for large-scale construction of apartment houses, the situation is extremely complicated. The absence of major investors in this market will occur in the future. Banks lend only if the developer has a project ready for at least 70%. And investing in start of construction until there can be no question. The same applies to commercial land. Builders and developers are closely associated with banks, and banks in turn reluctant to give loans to develop new projects.
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Content tags: land Mortgages
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